KARACHI: Federal Minister for Finance, Muhammad Aurangzeb, highlighted that business models cannot thrive on tax evasion, particularly sales tax on Saturday.
Speaking to the media at the Overseas Chambers of Commerce in Karachi, the minister highlighted the government’s policies as a driving force behind economic stability and the gradual decline in inflation.
The finance minister noted that multinational companies are performing well in Pakistan, generating significant foreign exchange. He revealed that these companies remitted $2.2 billion in profits abroad, urging them to increase exports further.
“The private sector plays a pivotal role in strengthening the economy; it must take the lead,” he stated, reiterating the government’s commitment to facilitating investors.
Highlighting the importance of promoting local industries, Minister Aurangzeb stressed the need to showcase “Made in Pakistan” products globally. He highlighted that boosting trade and investment is essential for sustained economic growth.
The minister also projected over $35 billion in remittances for the current fiscal year, asserting that improving the current account deficit would ease economic challenges.
Addressing speculations regarding the International Monetary Fund (IMF), he clarified that there has been no discussion about imposing a sales tax on petroleum products.
On a separate note, the minister highlighted inefficiencies in state-owned enterprises, revealing that entities incurring daily losses of Rs2.2 billion have contributed to a cumulative loss of Rs6 trillion over six years. He reiterated the critical need for curbing sales tax evasion to establish sustainable business models.
Responding to a query about petroleum smuggling, the finance minister disclosed that the government has sealed over 900 illegal petrol pumps as part of its crackdown on the illicit trade.
Minister Aurangzeb concluded by reaffirming the government’s resolve to foster economic stability through vigorous policy implementation and support for the private sector.
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